Reuters — Fertilizer company Nutrien said Monday it expects to increase potash production by about half a million tonnes in the second half of the year compared to earlier expectations, due to strong global demand.
As crop prices rise, farmers have greater incentive to use fertilizer and maximize yields, boosting potash demand and spurring a surge in global sales of potash fertilizer.
Nutrien expects higher output to boost core earnings from its potash business in the second half of 2021.
The Saskatoon-based company said in May it expects potash sales in the range of 12.5 million tonnes to 13 million tonnes for 2021. Last month, it also raised full-year forecast for adjusted net earnings per share to between $2.55 and $3.25 from $2.05 to $2.75 forecast earlier (all figures US$).
Domestic and offshore potash sales volumes are currently fully committed through September, based on original production profile for 2021, Nutrien said in a statement.
The company said it will be hiring more workers and “adapting its resources” to help lift production across most of its mines — particularly at its Vanscoy facility, about 35 km southwest of Saskatoon.
Nutrien was also recently reported to be in discussions with international mining firm BHP about a partnership on the latter company’s major potash development at Jansen, Sask., about 60 km southeast of Humboldt.
— Reporting for Reuters by Rithika Krishna in Bangalore. Includes files from Glacier FarmMedia Network staff.